Thanks for the question.
First, when you own a business, it's not a bad idea to hire an enrolled agent or CPA because you're not only responsible for doing your personal returns but also the business returns - that's four seperate returns - federal and state for business and federal and state for personal.
Now, that being said, one of the biggest legal mistakes is when small business owners withhold employee taxes and then don't pay them to the IRS. You need to be careful about this and make sure you're withholding proper taxes on your employees and then making the payments to the IRS.
Also, make sure you're not inflating expenses or hiding money taken in by the business and you won't go to jail. If you're doing something illegal - you will know it.
And, make sure you're paying quarterly installments to the IRS for your profit or have anough to cover the entire tax bill at year's end.
Like I stated earlier, a small business owner should be too busy to do their own taxes. Hire a qualified tax profesional and deduct the money you pay him.
I know it seems overwhelming when you first start a business - all the ins and outs you have to deal with - but it won't take you long for you to feel comfortable and understand what you need to do.
Here's a great website for future referene:
http://www.irs.gov/
I hope this helps - Good Luck !
Financial Advisor
15 years expertise in all ares of personal finance, including credit cards, mortgages, real estate.